INSIGHTMOTORSPORTCONTACT
In our weekly Market Monday insights, Prosperity Investment Management examines the latest developments across the globe's biggest financial markets - providing you with all the latest information you need to know.
Wall Street experienced its fifth straight quarterly gain last week, as the United States economy continues to recover from the effects of the coronavirus pandemic.
The S&P 500 Index and Nasdaq Composite Index moved to new highs and closed out a fifth consecutive quarterly advance. Large-cap growth stocks led the gains, with the Russell 1000 Growth Index stretching its weekly winning streak to eight. Technology and healthcare stocks led the gains within the S&P 500 whilst consumer discretionary stocks were also strong - boosted by a solid rise in Nike shares. Small and mid-caps underperformed after strong gains the previous week. Traders are also optimistic that the Federal Reserve will keep interest rates low for a while longer.
The Delta variant of coronavirus continued to disrupt European markets, with the majority of markets recording small declines. Germany’s Xetra DAX Index rose 0.27%, while France’s CAC 40 Index fell 1.06% and Italy’s FTSE MIB Index declined 0.89%. The UK’s FTSE 100 Index gave up 0.18% of its value. However, in more positive news, the continent’s unemployment rate decreased slightly from 8.1% to 7.9% in tandem with a significant growth in the manufacturing sector.
Meanwhile, it was a disappointing week on the markets in Asia with both China and Japan recording negative returns. In China, the non-manufacturing PMI came in weaker than expected, which some link to a resurgence of coronavirus infections in the southern province of Guangdong. In Japan, industrial production contracted by more than expected - falling 5.9% compared to May amid expectations of a 2.1% decline. The contraction was primarily due to manufacturers cutting back on production due to the global semiconductor chip shortage.
